Chevron executive questioned by attorneys for Deemston family suing driller
Attorneys for a father and son who are suing Chevron claiming they were sickened after the company drilled a natural gas well on their Deemston property are trying to demonstrate to a Washington County judge there is no daylight between the parent corporation and subsidiaries that did the actual work.
During a lengthy hearing Monday before Judge Michael Lucas, attorneys for Bryan Latkanich and his son, Ryan, questioned a top Chevron Corp. executive about the company’s connections to its subsidiaries as they tried to show why the company should remain a party in the lawsuit.
Mary Francis, who serves as the corporate secretary and chief governance officer for Chevron Corp., testified for nearly four hours as she tried to distance her company from its subsidiary Chevron USA and a former subsidiary, Chevron Appalachia LLC, which has since been acquired by EQT Corp.
“Chevron Corporation is a holding company that invests in various companies across the world,” Francis said while under questioning.
She said Chevron itself has only 200 to 300 employees, but about 40,000 people work for the numerous subsidiaries under the corporation that have “autonomous” functions with their own boards and executives.
“(Chevron USA) actually does the work,” Francis said of the drilling.
Bryan Latkanich and Ryan Latkanich in October 2022 sued Chevron and its subsidiaries along with EQT and its subsidiaries claiming drilling near their Deemston home contaminated their water. Ryan, who was a minor when the lawsuit was filed, suffered numerous rashes while taking a bath in 2013, and Latkanich has dealt with various health problems in recent years, which he blamed on chemicals from drilling contaminating leaching in their water supply.
Under questioning from Erin Powers, one of the Latkanichs’ attorneys, Francis seemed to indicate there are blurred lines between Chevron Corp. and its subsidiaries, even though they are considered separate entities.
For example, Francis confirmed that several board members for Chevron Corp. held roles within Chevron USA at one time or another, and in some cases simultaneously. She also acknowledged that they use the same logo, have the same email addresses for employees and several departments within corporate assist Chevron USA.
Francis said corporate had no role in the decision by Chevron USA to sell its Appalachia LLC to EQT in 2020, although she admitted the board would have been consulted and could have ultimately “vetoed” the sale.
Powers also centered her argument around the corporate board’s three-day trip to Western Pennsylvania in September 2015 when then Chevron Corp. CEO John Watson spoke at a reception the company hosted for local politicians and community leaders, along with “community shareholders” in the area. The corporate board also toured three of Chevron USA’s well sites in various phases as part of the trip.
“Is it fair to say that the reception at the Heinz museum (in Pittsburgh) was seen as an advocacy meeting?” Powers asked.
“No, it wasn’t for advocacy,” Francis responded. “It was a meet and greet.”
In addition, the Chevron logo once appeared as a backer for the Pittsburgh-based Marcellus Shale Coalition, although Francis said corporate was not involved in that partnership. Nor was it a “founding partner” of the Appalachian Partnership Initiative workforce development project. Other public relations initiatives included the STEAM geared “Fab Labs” for local schools, including in Waynesburg and Grindstone, that featured Chevron’s logo prominently.
“Would you agree with me that from the (marketing) documents puts Chevron out publicly as doing business in Pennsylvania?” Powers asked.
“No,” Francis said, noting that Chevron USA officially sponsors the Fab Labs.
Both Bryan and Ryan Latkanich were seated in the gallery along with several supporters during Monday’s hearing. It’s not known when Lucas will rule or how it will impact the lawsuit.